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V. 11% -12% = -1% 20% -22% If the simple CAPM is valid, which of the situation in Tables below is possible? Explain. Consider
V. 11% -12% = -1% 20% -22% If the simple CAPM is valid, which of the situation in Tables below is possible? Explain. Consider each situation independently. (14 points) a) Portfolio Market Expected Return 10% Beta 1 Stock A 8% 1.2 b) Portfolio Expected Return Beta Risk Free 10% 0 Market 18% 1.0 Stock A 33% 2.5
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
